13 Nov 2017 07:00
13 November 2017
AIM: FISH
Fishing Republic plc
("Fishing Republic" or "the Company" or "the Group")
Trading Update and Board Changes
Since the Company last updated the market in September, the Group has seen a significant deterioration in trading. This reflects a substantial increase in price competition as major competitors and independent stores have aggressively sought to maintain their market share, particularly at the end of the main fishing season. As a consequence of this change in market conditions, for the first time this year, monthly like-for-like store sales reduced, with a decline of 13% in October. This is in contrast to like-for-like sales growth of 16% experienced in the nine months up to the end of September.
Our online business has been similarly affected and, whilst sales via our own website are up 116% and overall online sales are up 24% in the year-to-date, the transition from third party sites to our own website is behind our expectations.
Although there are still two important trading months to come, the Board believes that, unless market conditions change, the trading performance for the year to 31 December 2017 will not meet market expectations and will result in an overall loss. The business remains cash positive and there will be a continuing focus on driving down stock levels.
Board Changes
Whilst the Company has expanded its store network during the year, the execution of the online model requires further focus and acceleration. The Board strongly believes that the fishing tackle market is well suited to an online model with the obvious efficiencies this brings in terms of returns on invested capital.
Consequently, the Board has agreed to appoint Chris Griffin as acting CEO, reporting to the Board, to conduct a strategic review with a mandate to explore all options to drive long term value for shareholders. Chris has a very strong e-commerce, retail and logistics background and was Director of E-commerce at SuperGroup plc, owner of the Superdry brand, from 2010 and 2014, during which time online sales grew from £3m to £60m. More recently, he founded and built the revolutionary supply chain software business, Anatwine Limited.
Chris will be particularly focussed on improving execution of the e-commerce business and the capital efficiency of the business, especially in further reducing and making better use of inventory.
As a consequence of Chris Griffin's appointment, Steve Gross will step down as CEO today but will remain on the Board as an Executive Director to support Chris in his strategic review. In addition, Zoe Gross, Operations Director and Paul Hagerty, IT Director, will step down from the Board with immediate effect.
James Newman, Chairman of Fishing Republic, said:
"The Board is delighted to welcome Chris to the Company to conduct his review and move the Company forward. His experience will be invaluable in driving shareholder value and improving the execution of our business plan."
Chris Griffin, acting CEO of Fishing Republic, said:
"I am looking forward to addressing the issues in the business in order to turn around its trading performance. The ongoing consolidation of the fishing tackle market provides an excellent opportunity to continue to grow the business, and there is enormous scope to improve the trading performance in what should be a natural e-commerce sector."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
Enquiries
Fishing Republic plc James Newman, Chairman |
| T: 020 3178 6378 (today)
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KTZ Communications Limited |
| T: 020 3178 6378 |
Katie Tzouliadis, Irene Bermont-Penn, Emma Pearson |
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Northland Capital Partners Limited |
| T: 020 3861 6625 |
Nominated Adviser and Broker |
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Matthew Johnson, David Hignell (Corporate Finance) |
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John Howes (Corporate Broking) |
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